Selective licensing scheme hits Birmingham agents and landlords
Birmingham follows in the footsteps of neighbouring cities such as Nottingham and areas further afield such as Durham and Liverpool.
Agents and landlords in Birmingham are set to need £700 licences to rent out property in 25 wards as part of the City Council’s plan to tackle crime and deprivation.
The City Council’s Cabinet has approved a five-year selective licensing scheme (SLS) which requires landlords to have a licence to ensure all privately rented properties within the areas meet a “minimum housing standard” which gives tenants “a stable home”.
The fee is proposed to be £700 including £295 for the application fee and £405 for the licence fee. The scheme would cover 40,000 properties – meaning the licence fee would generate an income of £28 million to Birmingham City Council. Anyone who is required to have a licence but does not would face a £30,000 fine.
MINIMUM STANDARDS
The report to Cabinet members states: “A selective licensing scheme will ensure that all privately rented properties within the designated area meet a minimum housing standard, which gives the tenant a stable home and helps with building stable communities.
“Tenants would be confident that homes meet the minimum energy-saving requirements which would contribute to the green city aspiration.”
A consultation on the scheme ran for 10 weeks up to January 4, and the results showed only a “minority” of landlords/agents agree that a selective licensing scheme would address crime and deprivation – though the majority of other parties agreed it would.
The council misjudges selective licensing as a tool to reduce home burglary.”
One respondent said: “The council misjudges selective licensing as a tool to reduce home burglary, as selective licensing is designed to address property conditions, not burglary. Should the council wish to address this issue, there are alternatives such as offering grants to tenants for home security improvements and strengthening community ties with police and voluntary organisations.”
AREAS OF CONCERN
The wards set to be involved in the scheme are Acocks Green; Alum Rock; Aston; Balsall Heath; Birchfield; Bordesley Green; Bordesley and Highgate; Bournbrook and Selly Park; Edgbaston; Gravelly Hill; Handsworth; Heartlands; Holyhead; Ladywood; Lozells; North Edgbaston; Small Heath; Soho and Jewellery Quarter; South Yardley; Sparkbrook & Balsall Heath; Sparkhill; Stockland Green; Tyseley and Hay Mills; Ward End and Yardley West and Stechford.
Get ready for rent increases tenants. Cause all smart tenants knows their rent pays for EVERYTHING. And then u will have more rent increases after that, as Landlords pack up, remaining Landlords think Wow the amount of people desperate for a house, they then charge what they like. Supply Demand.
And a minority of houses get better, the majority good houses get worse. As more admin & initial outlay takes away good funds for house refurbishments. I’ve gone from putting in 6 kitchens a year to 0.